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Glossary > SaaS Quick Ratio
SaaS Quick Ratio
The SaaS Quick Ratio is used to measure the growth efficiency of a SaaS business. In short it is a quick way to gauge the health of a SaaS company, especially start-ups.
The higher the quick ratio the better. On average a company with a ratio of 4 or higher is considered healthy, but this can vary by industry type.
SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churn MRR + Reduction MRR)
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